German automaker Volkswagen is going to finish 5,000 jobs by the end of 2023. Actually, the company has decided to do cost-cutting to finance its electric vehicles. During this period, about 900 employees will get early retirement and the rest will be forced out of the company due to the stagnation in production.
According to a statement, the company is preparing to retrench the number of people of 4 digits. Although the exact figures have not been revealed in the meantime, it is believed that 4,000 to 5,000 employees will have to leave the company. The statement said that through cost cutting, it helps to a great extent in managing the finances of the company.
Volkswagen’s HR director Gunnar Killian said in a statement, “Now we want to strengthen our position, a strict cost cutting will be needed to finance the necessary investments in the future.”
Gunnar Killian stated that in 2020, Volkswagen lost its top ranking in the global automobile market because of Toyota. Like all car makers, Volkswagen has been greatly affected by the economic downturn due to the coronovirus epidemic but the company expects to increase business in 2021.
Volkswagen expects the company’s electric vehicles to account for 70 percent of its European sales by 2030, doubling its previous target.